Vornado buys Canadians out of One Park Avenue


Vornado Realty Trust announced that, pursuant to a right of
first offer, it has agreed to acquire Canada Pension Plan Investment Board’s 45
percent interest in One Park Avenue, increasing Vornado’s ownership interest to
100 percent.

The purchase price values the property at $875 million. The
consideration to CPP Investments is approximately $158 million in cash plus
Vornado is assuming CPP Investments’ share of the existing debt.

The property is currently encumbered by $525 million of
debt, which bears interest at a rate of LIBOR plus 1.11 percent  and matures in March 2026, as fully extended.

One Park Avenue is a 943,000 square foot Manhattan office
building that is 67 percent leased to New York University through May 2050.

Vornado originally acquired an interest in the property in
March 2011 at a $394 million valuation and recapitalized the property with CPP
Investments in June 2014 at a $560 million valuation.

The purchase is expected to close in the third quarter of

(Visited 1 times, 4 visits today)

canadian pension plan investment boardCPPIBone park avenueVornado